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UKFI backs Horta-Osório to continue as Lloyds chief executive

UK Financial Investments, which oversees the Treasury's 41% stake in Lloyds Banking Group, is said to have conveyed to Sir Win Bischoff, the lender’s chairman, its support for Antonio Horta-Osório to return as chief executive of the state-backed bank.

However, UKFI, whose endorsement of the Portuguese financier comes ahead of a vital meeting on Thursday of Lloyds’ board, is believed to have called for significant organisational changes to ensure that an incident similar to Horta-Osório taking a leave of absence due to "extreme fatigue” does not recur.

This could lead to assignment of more prominent roles to the 47-year-old banker’s executive team, including Bischoff and finance director-designate George Culmer.

The scheduled board meeting on Thursday will also see Lloyds directors discuss rival bids from NBNK and the Co-operative for the lender’s so-called “Project Verde” portfolio of more than 600 high street branches.

NBNK, the bank buyout vehicle led by ex-Northern Rock boss Gary Hoffman, is this weekend understood to be weighing sweetening its £1.5bn offer for the branch network.

Comment: The question is whether Horta-Osório, frequently described as a “rock star” of banking, can find a way of working that can cope up with the stress and long hours involved in the job. Rock stars, as one financials analyst quipped last week, aren’t the best choice to conduct a symphony.